Oracle Fusion Procurement: Overview, Strategy, Customer Experiences and Roadmap

Oracle Fusion Procurement: Overview, Strategy, Customer Experiences and Roadmap Tom Anthony Vice President Procurement Product Strategy

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Oracle Fusion Procurement Agenda Overview Adoption Choices Customer Experiences

Cost Management - Key Fiduciary Responsibility Financial Services 22% Manufacturing 55% External spend comprises an average of 45% of revenue, and is growing Savings hit the bottom line and have a disproportionate impact on profitability Leading organizations leverage technology to automate tactical processes while focusing talent on high value, strategic processes Metals & Mining 44% Eng. & Const.53% Semiconductor 56% Other Industries 48% Source: CAPS Research

Diversifying Procurement’s Contribution Seizing the Larger Opportunity Complexity Reduction Revenue Growth Corporate Social Responsibility Supply Assurance Product & Service Differentiation Procurement Value Supplier Development Reduce Asset Intensity Cost Quality Risk Innovation Best Practices Next Practices

Adapting to Exploit the Larger Opportunity Cross functional category planning Global center-led operations Enable process collaboration

Oracle Fusion Procurement Smarter Negotiation Smarter Buying Smarter Collaboration Helps You Spend Smarter

Oracle Fusion ProcurementHelps You Spend Smarter Smarter Buying Smarter Collaboration Smarter Negotiation Packaged Analytics Adaptive Shared Services Interactive Collaboration Embedded Collaboration Role Based Dashboards Team Based Sourcing Social Collaboration Integrated Contracts New Consumer Experience

Smarter Negotiation Packaged Analytics Generate Supply Intelligence Team Based Sourcing Maximize the Value of Experts Integrated Contracts Create Enforceable Agreements

Generate Supply Intelligence Over 250 Reports and Alerts Spend Analysis Supplier Performance Analysis Procurement Performance Analysis Employee Expense Analysis

Maximize the Value of Experts Team Based Sourcing Suppliers Operations Category Manager Product Development

Integrated Contracts Master Agreement Create Enforceable Agreements Negotiation Mgmt Compliance Analytics Line Items Pricing Deliverables Service Levels Terms Amendments Authoring Mgmt Contract Execution Ver. 2.x Repository mgmt Universal Repository Mgmt Net 30 Contract Execution legacy

Smarter Buying Adaptive Shared Services Leverage Category and Process Expertise Role Based Dashboards Show Users What’s Important to Them New Consumer Experience Help Them Understand What to Do

Adaptive Shared Services Shared Services Business Unit Leverage Category and Process Expertise Industrial Specific Process Industrial Categories Consumer Categories Consumer Specific Process Standardized and Shared… Centralized Categories Hardware Travel e.g. Packaging e.g. Packaging Processes Agreements Office Supplies Supplies Telco Catalogs Pricing ABC Consumer BU ABC Industrial BU Consumer Goods Business Unit Industrial Supplies Business Unit

Adaptive Shared Services (Continued) Leverage Category & Process Expertise

Show Users What’s Important to Them Role Based Dashboards Role Based Dashboards For the way people really work Category Managers Graphical View of KPIs Sourcing Requesters Dynamic Summary of Key Actions Contracts Self Service Procurement Context Sensitive Alerts Buyers Personalized Worklists Purchasing Suppliers Intelligent Watchlist Payables

Help Them Understand What to Do Consumer-Based User Experience Where can I find…? Which is the best choice? How do I…? What do I need? Supplies Office Supplies Hardware Software Travel Telco Services Simplified Search Embedded Analytics Embedded Learning Catalog Super Store

Help Them Understand What to Do (Cont.) Embedded Analytics Delivers Analytics Within the Context of Procurement Applications Provides Users with Supplier Performance and Ratings at the Point of Consumption Provides Comparisons of Similar Products and Services

Smarter Collaboration Interactive Collaboration Improve Supplier Communication Embedded Collaboration Keep Everyone on the Same Page Social Collaboration Accelerate Knowledge Transfer

Interactive Collaboration Secure. Intuitive. Real Time. Improve Supplier Communication Contract Negotiation Order Collaboration Bid Responses End-Users Suppliers Payables Collaboration Shipments & Deliverables Performance Monitoring

Embedded Collaboration Suppliers Category Manager End Users Keep Everyone on the Same Page e.g. Update Invoice e.g. Quantity Change e.g. Renew Agreement Source Contract Requisition Order Fulfill Pay Finance Buyers Legal Expert e.g. Approve Change e.g. Change Request - Created for inter and intra enterprise collaboration - Powerful document change management controls - Notifications pushed across applications and devices

Social Collaboration Accelerate Knowledge Transfer what Who End users finance Category Managers suppliers A how where

Oracle Fusion Procurement Smarter Negotiation Smarter Buying Smarter Collaboration Helps You Spend Smarter

Choose Your Next Steps Continue On Your Current Path Evaluate the latest Applications Unlimited releases for the value they would add to your business Move to Fusion Step-by-Step Add Fusion Procurement modules when available to existing environment Move to Fusion Applications Upgrade by pillar or global deployment when you’re ready

Complete Choice You Decide When, You Decide What, You Decide How Upgrade On Your Schedule Select The Deployment That’s Right For You Choose The Solutions You Need

The Deployment Choice What Works For You? Public Cloud Private Cloud On Premise Hybrid

Procurement on Public Cloud Services Powered by Oracle Fusion Procurement Easy to Buy Predictable per-user-per-month pricing with no hardware to buy or set-up Easy to Adopt Consumer-based user experience without IT bottlenecks, customizations, or complex provisioning Easy to Grow Part of a modular suite that runs on public cloud, private cloud, on premise- or any combination that meets your needs Sourcing Negotiation Styles Guided Event Creation Live Negotiation Monitor Spreadsheet Automation Procurement Contracts Contract Lifecycle Mgmt Contract Repository Contract Search Compliance Monitoring Supplier Portal Interactive Collaboration Supplier Work Center Catalog Authoring Electronic Invoicing Purchasing Center Driven Procurement Unified Approvals Buyers Work Center Document Change Mgmt Self Service Procurement Consumer Experience Unified Approvals Catalog Management

Fusion Coexistence Strategies Procurement and Spend Analytics, Sourcingand Contracts Solution Shared services solution for spend classification, analytics, strategic sourcing, and contract management Capabilities Spend classification and analysis across heterogeneous data sources Online negotiation and collaboration, RFX, reverse auctions Contract authoring, universal repository, contract export, and compliance management Benefits Gain visibility into changing spending patterns across the enterprise Promote collaboration, create long term savings, and make sourcing easier for everyone Gain visibility to agreements, shorten cycle times and automate compliance Oracle Fusion Procurement Shared Services Spend Classification Analytics Sourcing Contracts legacy

Fusion Coexistence StrategiesShared Services Procure-to-Pay Solution Shared services Procure-to-Pay Capabilities Self service requisitioning with consumer-based user experience Integrated purchasing and payables with pervasive analytics and role-based dashboards Interactive supplier portal and transaction delivery network Benefits Broader adoption, higher compliance, and increased employee satisfaction Simplified set-up & maintenance of center-led operations for global efficiency, consolidation, and tax benefits Facilitate transaction-based and collaborative supplier enablement strategies Oracle Fusion Procurement Shared Services Self Service Procurement Supplier Portal Supplier Network Purchasing Payables legacy

The customer provides a wide range of financial products and services, including retirement and investment services and life and health insurance. Sourcing Coexistence Procurement Business Challenges Manual processes Multiple systems cause data exceptions Disjointed supplier process support Rationale for Adopting Oracle Fusion Applications Standardize on one common truth for supplier information Automate the Sourcing Process Procurement Contracts Oracle FusionProcurement Sourcing Purchasing Self Service Procurement Supplier Portal Procurement and Spend Analysis KPIs, Dashboards,& Extensibility

The customer manufactures dairy, feed, and other agricultural products. Procurement Business Challenges Highly decentralized procurement processes Current architecture could not support centralization of Procurement processes Manual Sourcing and Contracting processes Rationale for Adopting Oracle Fusion Applications Reduce costs and improve leverage Streamline the Procure to Pay process Automate the Sourcing and Contracting processes Procure to Pay Coexistence Oracle FusionFinancials Procurement Contracts Asset Management General Ledger Accounts Payable Oracle FusionProcurement Payments &Collections Accounts Receivable Cash & Expense Management Sourcing Purchasing Self Service Procurement Common Modules KPIs, Dashboards,& Extensibility Supplier Portal Procurement and Spend Analysis KPIs, Dashboards,& Extensibility

Business Challenges Running on an older version 11.5.10 which requires a move to R12 or Fusion Financial Reporting did not meet CFO expectations Service Center business model with Multiple Organizations requires Fins, AP and PO resources to log in and out of Oracle responsibilities Inefficient business processes Self-service usability challenges Rationale for Adopting Oracle Fusion Applications Integrated Financial Reporting/Intelligence in Oracle Fusion provides the reporting solution that the CFO wants Multi-Org capabilities in Fusion Complete ERP Oracle FusionProject Portfolio Mgmt Oracle FusionFinancials Project Costing ProjectBilling Accounts Payable General Ledger Asset Management Project Performance Reporting Oracle FusionProcurement Project Control Project Integration Gateway Project Contracts Payments &Collections Cash & Expense Management Accounts Receivable Purchasing Self Service Procurement Sourcing Common Modules KPIs, Dashboards,& Extensibility KPIs, Dashboards,& Extensibility Supplier Portal Procurement and Spend Analysis KPIs, Dashboards,& Extensibility Procurement Contracts

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Oracle Fusion Procurement: Overview, Strategy, Customer Experiences and Roadmap